Interesting points. Based on a fast visit to the Edgar County link, I'd guess that farm program payments also fall into the "transfer payments" category.

You don't mention the "multiplier effect"--that somehow one dollar earned on the farm generates X dollars of economic activity in the county. It makes sense to me, though I'm no economist. And wouldn't a dollar of Social Security also have a multiplier effect?
 

bill: This data is derived from income tax info, so farm payments are already included in farm income. To really see the stuff for your county, run through the first link.

As for the multiplier effect, please check for later post.
 

Intersting read. The U if Illinios did a study that found that Sch F can misrepresent farm income by as much as 80%. As I recall the descrepancy was a result of Sec 179/Depreciation and the lack of an accrual basis used to report income. Thoughts??
 

John:

I'm surprised it isn't higher than that (80%). Cash accounting allows us to postpone, but not avoid taxes by increasing inventories and prepaying expenses. I am ambivalent on the merit of this idea, and am too lazy to switch to accrual.

But it all comes home to roost. You end up in a year with all income and no expenses. My guess is this happens about age 59.

Still as a close friend once pointed out, "After you pay your taxes, you get to keep all the rest!"